Nextnation’s share price may rise further after yesterday’s firm move. We looked at this stock in early January as it showed potential to move higher. Since then, it has moved favourably and reached our first target of RM0.145. After the price spike, it slipped into a nearly 2-month correction. Nontheless, the stock now bears an upward bias it has retraced by less than 62% of the January rally, which is positive according to Fibonacci analysis. The strong move yesterday may have confirmed the formation of a higher bottom at RM0.09. Thus, we expect a new upleg and believe a purchase can be made at the current price, or on pullback towards the stop loss at RM0.09. A measured move based on the January rally could see the price reach RM0.18, also a Fibonacci level of the 2007-2009 price decline, provided that the recent high of RM0.145 is violated. A strong move could even see the share price testing the late 2007-high of RM0.22, which represents a clawback of 38% of the 2007-2009 decline, while a close below RM0.09 will invalidate the trade and may even spell the end of the 6-month rally
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